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CIRCULAR No

CIRCULAR No. 03/1999/TT-TCBD OF MAY 11, 1999 GUIDING THE IMPLEMENTATION OF THE GOVERNMENT�S DECREE No. 109/1997/ND-CP OF NOVEMBER 12, 1997 ON POST AND TELECOMMUNICATIONS AND THE PRIME MINISTER�S DECISION No. 99/1998/QD-TTg OF MAY 26, 1998 ON THE MANAGEMENT OF POST AND TELECOMMUNICATION PRICES AND CHARGES

In furtherance of the Government�s Decree No. 109/1997/ND-CP of November 12, 1997 on post and telecommunications and the Prime Minister�s Decision No.99/1998/QD-TTg of May 26, 1998 on the management of post and telecommunication prices and charges; after consulting the Government Pricing Committee, the General Department of Post and Telecommunications hereby provides the following guidances:

I. GENERAL PROVISIONS

1.1. Scope and objects of regulation:

1.1.1 This Circular guides the State management over prices and charges of post and telecommunication services on the Vietnamese territory, regarding the following subjects:

- Enterprises providing post and telecommunication services (hereafter called providing enterprises for short);

- Enterprises reselling post and telecommunication services (hereafter called reselling enterprises for short). Providing and reselling enterprises shall hereafter be referred collectively to as enterprises;

- Post and telecommunication service agents (hereafter called agents for short);

- Users of post and telecommunication services (hereafter called users for short).

1.2. Principles for setting post and telecommunication prices and charges:

1.2.1. On the basis of the production and services costs;

1.2.2. Compatibility with the services� modes and quality and the users� payment capability;

1.2.3. Encouragement of healthy competition, step-by-step integration into the region and the world;

1.2.4. Regulation between services, territorial regions and enterprises, meeting the requirements of strategy for post and telecommunication development throughout the country, in line with the Party�s and State�s economic and social policies; Creation of conditions for enterprises to cover their production costs, make accumulation and fulfil their obligations towards the State budget;

1.2.5. The international post and telecommunication service charges are set in conformity with the regulations on post and telecommunication charges of international and regional post and telecommunication organizations, with which Vietnam has signed bilateral or multilateral agreements; as well as in line with the Party�s and State�s external economic policies;

1.2.6. The domestic post and telecommunication prices and charges are determined in Vietnam dong. The international post and telecommunication prices and charges are determined in US dollar (USD), applicable to all Vietnamese and foreign organizations and individuals in Vietnam. Such prices and charges are collected in USD or Vietnam dong according to the average transaction exchange rates on the inter-bank foreign currency market, announced by the State Bank of Vietnam.

II. PRICE AND CHARGE SETTING TASKS AND COMPETENCE

The price and charge setting tasks and competence shall comply with Article 4, Decision No.99/1998/QD-TTg of May 26, 1998 of the Prime Minister on the management of post and telecommunication prices and charges. The General Department of Post and Telecommunications hereby provides the following additional guidance:

2.1. The Prime Minister shall ratify the domestic standard charge options and authorize the General Department of Post and Telecommunications to decide the standard service charges defined in Section 1, Article 4 of the Prime Minister�s Decision No.99/1998/QD-TTg of May 26, 1998 on the management of post and telecommunication prices and charges, including:

- Basic charges for domestic mails of up to 20 grams;

- Domestic ordinary telegraph charges, calculated on the number of words;

- Domestic long-distance call charges (including facsimile and data transmission via telephone channels), for medium distances.

2.2. The General Department of Post and Telecommunications shall:

2.2.1. Decide the price and charge brackets or prices and charges of the following services after consulting the Government Pricing Committee:

- The concrete service charge rates, based on the standard service charge rates stipulated at Point 2.1 above.

- Telephone subscription;

- Local telephone services (including telephone calls, facsimile and data transmission via telephone channels);

- Subscription for package switching data transmission;

- Telephone and facsimile installation.

2.2.2. Set:

2.2.2.1. Price and charge brackets or prices and charges for the following services:

- Special services for mail items in service of the Government, including urgent mails and time mails.

- Study materials for the blind;

- Letters sent overseas;

- Hydro-meteorological telegraph, life safety telegraph, State affairs telegraph; and domestic press telegraph;

- Domestic public telecommunications on the sea;

- Trunk hiring;

- Hiring of domestic and international long-distance telecommunication channels;

- Hiring of terminals and package-hiring installation for direct access to Internet;

- Information on package-switching data transmission;

- International telephone services (including telephone calls, facsimile and data transmission via telephone channels);

- Mobile phone subscription, connection and calls (including fax and data transmission via telephone channels);

- Installation and information on indirect access to Internet;

- Paging services nationwide.

2.2.2.2. Decide concrete price and charge rates or price and charge brackets or assign enterprises to decide prices and charges for new services if such enterprises are licensed to provide services;

2.2.3. Prescribe the mechanism for management of post and telecommunication service prices and charges for organizations, which are allowed to resell services according to the provisions of law.

2.3. Enterprises shall:

2.3.1. Basing themselves on the price and charge brackets and guiding documents of the General Department of Post and Telecommunications and the Government Pricing Committee, decide concrete price and charge levels for post and telecommunication products and services; decide and guide the application of prices and charges of post and telecommunication services outside the list prescribed by the State.

2.3.2. Decide prices and charges for experimental services during the time of the experimentation thereof.

III. ELABORATION AND EVALUATION OF PRICE AND CHARGE OPTIONS

3.1. Organizing the elaboration of price and charge options:

3.1.1. Regarding the standard service prices and charges to be ratified by the Prime Minister and service prices and charges to be decided by the Government Pricing Committee as stipulated in Items 2.1 and 2.2. of this Circular, the General Department of Post and Telecommunications shall organize the elaboration of the standard service charge options.

3.1.2. Enterprises shall work out price and charge options for post and telecommunication services in the following cases where:

- The service costs and the service supply-demand relations fluctuate to the extent that requires the adjustment of the service prices and charges;

- The State�s management mechanism and policies for services change, thus affecting the structure of service prices and charges;

- Enterprises are licensed to provide new services;

- The General Department of Post and Telecommunications requests the elaboration of new price and charge options for consideration and adjustment of prices and charges.

Enterprises shall have to organize the elaboration and submission of price and charge options to the General Department of Post and Telecommunications within 45 days after receiving the option elaboration request. For complicated price and charge options, the time-limit for elaboration and submission thereof shall not exceed 90 days after the enterprises receive the option elaboration request from the General Department of Post and Telecommunications.

3.2. The post and telecommunication price and charge options must be elaborated on the price and charge setting principles mentioned in Item 1.2 of this Circular.

3.3. A dossier of price and charge option shall include:

3.3.1. A report on the price and charge option signed by the enterprise�s head and affixed with its seal (for post and telecommunication services decided by the State);

3.3.2. The price and charge option with the following contents:

- The situation on service provision and use (the organization of service production and provision and market demands) and the necessity to adjust or promulgate new service prices and charges;

- The service costs calculation table;

- The explanation on the calculation method and grounds as well as the cost-related factors formulating the service prices and charges;

- The table of prices and charges of the same services applied by countries in the region and the rest of the world (if any);

- The table of analytical comparison with prices and charges of the related services;

- The enterprise�s proposals on the service prices and charges, including the proposals on mechanism for control and management of service prices and charges.

3.4. Evaluation of price and charge options:

3.4.1. For standard service prices and charges to be ratified by the Prime Minister as mentioned in Item 2.1 of this Circular, the Government Pricing Committee shall evaluate the price and charge options before they are submitted by the General Department of Post and Telecommunications to the Prime Minister for decision.

3.4.2. For post and telecommunication prices and charges to be decided by the Government Pricing Committee, the Government Pricing Committee shall evaluate the options and promulgate the prices and charges at the proposal of the General Department of Post and Telecommunications.

3.4.3. For post and telecommunication prices and charges to be decided by the General Department of Post and Telecommunications as stipulated at Point 2.2.1, Part II of this Circular, the General Department of Post and Telecommunications shall consult the Government Pricing Committee on the projected price and charge options before they are officially promulgated.

3.4.4. For post and telecommunication prices and charges to be decided by the General Department of Post and Telecommunications as stipulated at Point 2.2.2, Part II of this Circular, the General Department of Post and Telecommunications shall organize the evaluation of price and charge options and decide the promulgation thereof.

3.4.5. For service prices and charges to be decided by enterprises, the enterprises� heads shall have to evaluate the options and promulgate such prices and charges in accordance with the provisions of this Circular.

3.5. The time-limit for evaluation and promulgation of prices and charges by the General Department of Post and Telecommunications shall be 7 days after it receives the price and charge option dossier as prescribed. With regard to the complicated price and charge options related to activities of different branches of the national economy and the people�s life, which need more time for preparation, the General Department of Post and Telecommunications shall notify the enterprises that submit the price and charge options of the extended time-limit.

IV. INTERNATIONAL NEGOTIATION CHARGES

4.1. Providing enterprises, which are licensed to deal in post and telecommunication services by the General Department of Post and Telecommunications shall be entitled to negotiate and reach agreement on international negotiation charges with foreign exploiters according to the principles and policies stipulated by the General Department of Post and Telecommunications.

4.2. International negotiation charges shall include the following types:

- International total accounting charge;

- International payment charge;

- International termination charge;

- International transit charge.

4.3. Principles for the discussion and agreement on international negotiation charges:

4.3.1. International negotiation charges shall be built on the basis of the costs necessary for the provision of international services by the concerned Vietnamese enterprises and foreign exploiters;

4.3.2. International negotiation charges shall be agreed upon on the principle of equality and voluntariness;

4.3.3. The already agreed upon international negotiation charges must conform with the regulations and suggestions of the International Telecommunication Union (ITU), the Universal Postal Union (UPU) or the regional organizations such as the Asia-Pacific Telecommunications (APT), the Asia- Pacific Post Union (APPU), which have been approved by Vietnam�s General Department of Post and Telecommunications;

4.3.4. The already agreed upon international negotiation charges must be compatible with the Party�s and State�s economic, social and external economic policies, as well as with the agreements (if any) signed between the General Department of Post and Telecommunications and the post and telecommunications State management agencies of the relevant countries.

4.4. Enterprises shall have to promptly register with the General Department of Post and Telecommunications the results of agreement on international negotiation charges between them and foreign exploiters.

4.5. Abrogation of agreements on international negotiation charges:

4.5.1. The General Department of Post and Telecommunications shall decide the abrogation of enterprises� agreements on international negotiation charges if such agreements violate the General Department of Post and Telecommunications� regulations mentioned in this Circular.

4.5.2. The enterprises shall have to re-negotiate and reach new agreements on international negotiation charges with relevant foreign exploiters.

4.6. Payment of international negotiation charges:

4.6.1. Enterprises shall effect the payment of international negotiation charges under conditions already agreed upon by the parties in the service-provision contracts;

4.6.2. Enterprises shall have to recover and pay debts on international negotiation charges accurately and on time as prescribed by law.

4.7. Biannually and annually, enterprises shall have to report to the General Department of Post and Telecommunications on the situation of application of international negotiation charges as well as the payment situation effected between them and international post and telecommunication exploiters.

V. CONNECTION CHARGE

5.1. Connection charge is a sum of money to be paid by an enterprise which demands to switch or terminate a call to the enterprise providing such call-switching or -termination service. Connection charge shall be calculated according to the volume of information transmitted through the connection point.

5.2. Connection charge shall be formulated on the following principles:

5.2.1. Compliance with the State�s regulations on mechanism for the management of post and telecommunication prices and charges;

5.2.2. On the basis of the reasonable connection costs of enterprises;

5.2.3. Equality, non-discrimination, cooperation and mutual benefit among enterprises participating in the connection;

5.2.4. Contribution to the adjustment of services so as to support and encourage enterprises to enhance and expand the provision of public-utility and universal post and telecommunication services.

5.3. The General Department of Post and Telecommunications shall stipulate in detail the connection charge levels or bracket as well as the connection charge payment for application by the concerned enterprises.

VI. BILLING AND PAYMENT OF PRICES AND CHARGES

6.1. Making and printing bills:

6.1.1. Enterprises shall have to accurately and promptly bill prices and charges to users of post and telecommunication services. Bills made by enterprises must comply with the Finance Ministry�s regulations on voucher and invoice regime.

6.1.2. Except where the service users do not request the bill-printing, when making monthly bills under contracts, enterprises shall have to provide the service users bills free of charge once at the time of printing bills for users of the following services:

- Inter-provincial calls;

- Mobile calls;

- Overseas calls.

6.1.3. Apart from the printing of free-of-charge bills according to the provisions in Item 6.1.2 above, enterprises may collect money from the service users to cover the costs of the printing of bills for other services when so requested.

6.2. Rights and obligations of the parties in price and charge payment:

6.2.1 Rights and obligations of enterprises:

6.2.1.1. Enterprises and agents may reach agreement with service users on the forms and conditions for the payment of post and telecommunication service prices and charges in conformity with the provisions of law;

6.2.1.2. Enterprises may request the service users to pay fully and on time prices and charges for services they have used;

6.2.1.3. Enterprises may convert US dollars into Vietnam dong in order to collect international post and telecommunication charges as follows:

Monthly, enterprises shall publicly notify international post and telecommunication service users of the exchange rate between USD and Vietnam dong, based on the average transaction exchange rate on the inter-bank foreign currency market, announced by the State Bank of Vietnam on the 25th of the previous month (if the 25th day is a holiday, the exchange rate of the immediately preceding working day shall apply) for the collection of charges in the subsequent month. If within a month the exchange rate between USD and Vietnam dong rises or falls by more than 5%, as compared with the announced one, enterprises shall be allowed to change the applicable exchange rate to make it compatible with the fluctuation of the average transaction exchange rate on the inter-bank foreign currency market.

6.2.1.4. Enterprises shall have the right to request the service users to pay the overdue debt interests for each day of late payment due to their faults, which shall be calculated on the total amount of the late paid prices and charges. The interest rate applied to such late payment shall comply with the stipulations of the State Bank of Vietnam.

6.2.1.5 Enterprises shall have the right to refuse, halt or terminate the provision of services to users according to the stipulations of the General Department of Post and Telecommunications and the agreements stated in the service-provision contracts, if the users make late payment due to their own faults or fail to pay prices and charges, including the overdue debt interests. In that case, the users shall still have to pay the outstanding prices, charges and overdue-debt interests (if any) to the enterprises;

6.2.1.6. Enterprises shall have to provide services of the prescribed quality and criteria and at the price and charge levels already agreed upon;

6.2.1.7. Enterprises shall have to provide guidance and explanation on prices and charges and create favorable conditions for the service users to fulfill their price and charge payment obligation;

6.2.1.8. Enterprises shall have to settle the service users� complaints about prices and charges.

6.2.2. Rights and obligations of the users:

6.2.2.1. The users shall have the right to be given guidance and explanation on prices and charges for services provided for them by enterprises;

6.2.2.2. The users shall have to pay fully and on time prices and charges according to the provisions of law, the regulations of the General Department of Post and Telecommunications and the terms of the service provision contracts which they have signed with the service-providing enterprises when using post and telecommunication services;

6.2.2.3. The users shall have to pay the service-providing enterprises the outstanding charges and interests thereon according to the provisions at Items 6.2.1.4 and 6.2.1.5 above;

6.2.2.4. The users shall have the right to complain with post and telecommunication service providing enterprises about the latter�s price and charge errors as well as the price- and charge-related errors in the provision of post and telecommunication services. Pending the settlement of their complaints by the service providing enterprises, the users shall still have to fully pay prices and charges according to the enterprises� notices.

6.3. Agents shall have the rights and obligations in making bills and invoices and payment of prices and charges towards the enterprises and users according to the terms of the agency contracts which they have signed with the concerned enterprises and to the provisions of law.

VII. PRICE AND CHARGE REGISTRATION AND POSTING UP AND REPORTING ON PRICE AND CHARGE APPLICATION

7.1. Registration of prices and charges:

7.1.1. With regard to service prices and charges decided by enterprises themselves, the enterprises shall have to send dossiers of price and charge registration to the General Department of Post and Telecommunications within 15 days after the promulgation of such prices and charges.

7.1.2. A dossier of price and charge registration shall include:

- The decision promulgating prices and charges and the guiding documents attached thereto;

- The price and charge option made according to the contents stipulated in Item 3.3.2.

7.2. Posting up of prices and charges:

7.2.1. Enterprises shall have to post up and announce the post and telecommunication service prices and charges before they are applied;

7.2.2. Transaction bureaus of providing enterprises, reselling enterprises, agents, restaurants and hotels must all post up prices and charges publicly, accurately, clearly and in conformity with the contents and quality of services they provide.

7.3. Reporting on the situation of price and charge application:

7.3.1. Biannually and annually enterprises shall report to the General Department of Post and Telecommunications the situation of application of the already promulgated prices and charges for a sum-up by the latter.

VIII. PRICE AND CHARGE EXEMPTION OR REDUCTION

8.1. Principles for exemption or reduction:

8.1.1. The price and charge exemption or reduction must be decided based on the enterprises� application capability.

8.1.2. The enterprises� price and charge exemption or reduction must not lead to the devaluation of the service prices and charges for unhealthy competition.

8.2. The exemption or reduction of post and telecommunication prices and charges in service of defense and security and other special political tasks shall be decided by the Prime Minister at the General Department of Post and Telecommunications� proposal, after consulting the Government Pricing Committee and relevant branches.

8.3. The General Department of Post and Telecommunications shall decide:

8.3.1. Charge exemption in the following cases:

- Calls to urgent service telephone numbers: Police (113), fire brigades (114) or medical emergency (115);

- Basic charges and charges for numbering postal parcels and packages containing relics of fallen combatants and war-dead, sent by organizations, agencies or mass organizations;

- Basic charges and special service charges (except for air transportation charges) for the blind�s learning materials;

- Basic charges and air transportation service charges for letters giving information on fallen combatants� tombs, sent by organizations and mass organizations. To inscribe clearly on such letters� envelopes the following: "thu bao tin mo liet si" (letter with information on fallen combatants� tombs);

- Basic charges and special service charges for postal parcels and packages sent abroad to prisoners and foreigners who were detained during the war time, directly by such persons or through competent bodies;

- The use of domestic and international post and telecommunication services in service of the management, control and direction of post and telecommunication production and business activities (post and telecommunication professional activities);

- Other cases to be stipulated by the General Department of Post and Telecommunications.

8.3.2. The levels of price and charge reduction for special subjects for each specific service;

8.3.3. Other cases of price and charge exemption or reduction at the proposal of enterprises.

8.4. Enterprises shall effect price and charge exemption or reduction in the following cases:

8.4.1. By decisions of the Prime Minister or the General Department of Post and Telecommunications on post and telecommunication service prices and charges exemption or reduction defined in Items 8.2 and 8.3, this Circular;

8.4.2. For services with prices and charges decided by the State, in addition to the price and charge exemption or reduction according to the provisions in Items 8.2 and 8.3 of this Circular, enterprises may take initiative in prescribing the price and charge exemption or reduction within definite time-limits for humanitarian or charity purposes, or in service of special events, holidays or New Year days; the maximum reduction level must not exceed 15% of the already defined price and charge levels. If the price and charge reduction duration exceeds 10 days, such reduction must be agreed upon by the General Department of Post and Telecommunications. When deciding the price and charge reduction, enterprises shall, at the same time, have to report it to the General Department of Post and Telecommunications;

8.4.3. For services with price and charge levels decided by enterprises themselves, the enterprises shall have the right to take initiative in prescribing the price and charge reduction according to the principles stipulated in Item 8.1 of this Circular.

IX. COST CONTROL, PRICE AND CHARGE EXAMINATION AND INSPECTION

9.1. Cost control:

9.1.1. The General Department of Post and Tele-communications shall assume the prime responsibility and coordinate with the Government Pricing Committee in organizing the control an enterprise�s production costs in the following cases where:

- Such enterprise fails to strictly comply with the State�s regulations on setting post and telecommunication prices and charges;

- Such enterprise shows signs of abusing its monopolistic position or alliance to increase or decrease prices and charges for unhealthy competition, which affects the interests of other enterprises, consumers and the State;

- It proposes changes in prices and charges or proposes the change of its price and charge rates or the promulgation of new ones;

- It settles complaints of users or other enterprises (if necessary).

9.1.2. Basing itself on the cost control results, if detecting any violation committed by the concerned enterprise, the General Department of Post and Telecommunications may:

- Request or coordinate with other State agencies to handle the enterprise�s violation according to the provisions of law;

- Promulgate new prices and charges for services which fall under the deciding competence of the General Department of Post and Telecommunications;

- Request the enterprise to change the already promulgated price and charge rates if such change comes under competence of the enterprise.

9.2. Price and charge examination and inspection:

9.2.1. The General Department of Post and Telecommunications shall examine and inspect prices and charges effected by an enterprise according to the following contents:

- The regime of price and charge management, registration and promulgation by such enterprise;

- The equipment used for charge calculation and the charge calculation programming by such enterprise;

- The implementation of the General Department of Post and Telecommunications� regulations on charge calculation, billing, invoicing and collection;

- The settlement of price and/or charge-related complaints of users and other enterprises;

- The implementation of the regulations on the posting up of prices and charges.

9.2.2. The enterprise shall have the responsibilities:

- To regularly guide, inspect and examine the management of prices and charges by its member units and establishments;

- To fully and accurately provide necessary data and create favorable conditions for the General Department of Post and Telecommunications and other competent State management agencies to examine and inspect prices and charges at the enterprise.

9.2.3. The organization or coordination in organization of examination, inspection and handling of violations of post and telecommunication prices and charges shall comply with the current stipulations of the State.

X. COMPLAINTS AND SETTLEMENT OF PRICE- AND CHARGE- RELATED COMPLAINTS

10.1. Contents of complaints about prices and charges:

10.1.1. The users may make complaints against enterprises according to the contents prescribed in Item 6.2.2.4 of this Circular. The users� first-time complaints must be sent to the complained enterprises for settlement;

10.1.2. An enterprise may make complaints against another enterprise about the latter�s applicable price and charge rates as well the price and charge payment under the regulations of the General Department of Post and Telecommunications as well as the terms already agreed upon by the concerned parties in the contract.

10.2. The statute of limitations for complaints:

10.2.1. The statute of limitations for users to make their complaints:

10.2.1.1. For the service price and charge errors which occur when the users use services at the enterprise�s post offices or transaction offices, the statute of limitations for the users to make their complaints shall be 1 month from the date they start using such services;

10.2.1.2. For the price and charge errors which occur when the users use services through the service-provision contracts signed with the enterprise, the statute of limitations for the users to make their complaints shall be 1 month after they receive the price and charge payment notices.

10.2.2. The statute of limitations for enterprises providing or reselling post and telecommunication services shall be 1 month from the date set for price and charge payment.

10.3. Time-limits for complaint settlement:

10.3.1. Time-limits for settlement of users� complaints:

10.3.1.1. Enterprises shall have to settle the users� complaints and notify the latter of the settlement results within 2 months, for domestic post and telecommunication services, and 3 months, for international post and telecommunication services, from the date they receive such complaints;

10.3.1.2. If the complainants disagree with the complaint settlement by enterprises, they shall, within 30 days after receiving the notices on the complaint settlement results, be entitled to lodge the complaint to the immediate higher-level agency managing the units which have settled the complaints for further settlement. The time-limit for the further settlement of such complaints shall be 2 months after the receipt thereof;

10.3.1.3. If the concerned enterprise has decided the complaint settlement which the complainant sees it unsatisfactory, the latter shall, within 30 days after receiving the notice on the complaint-settlement results, be entitled to request the General Department of Post and Telecommunications or the Economic Court or the Civil Court to consider and settle the complaint according to the provisions of law.

10.3.2. Time-limits for settlement of complaints of enterprises providing post and telecommunications services and enterprises reselling post and telecommunications services:

10.3.2.1. The complained enterprise shall have to settle the complaint of the complaining enterprise within 2 months, for domestic post and telecommunication services, and 3 months, for international post and telecommunication services, after receiving such complaints;

10.3.2.2. If the complaining enterprise thinks that the complained enterprise has settled the complaint unsatisfactorily, it shall, within 30 days after receiving the notice on the complaint-settlement results, be entitled to request the General Department of Post and Telecommunications or the Economic Court to consider and settle its complaint according to the provisions of law.

XI. ORGANIZATION OF IMPLEMENTATION AND IMPLEMENTATION EFFECT

11.1. Subjects liable to implement this Circular shall have to strictly and fully comply with the provisions thereof. All violations of this Circular shall be dealt with according to the provisions of law.

11.2. This Circular takes effect 15 days after its signing. The earlier regulations contrary to this Circular are all now annulled.

11.3. In the course of implementation, any arising problems should be promptly reported to the General Department of Post and Telecommunications for study and settlement.

General Director of Post and Telecommunications

MAI LIEM TRUC